Hong Kong’s economy expanded by 5.9 per cent in the first quarter of 2026, marking its fastest quarterly growth in nearly five years, the government said on Tuesday, while cautioning over “downside risks” linked to the Middle East conflict.
The preliminary figure exceeded the 3.5 per cent forecast by economists surveyed by Bloomberg and improved on the 4 per cent growth recorded in the final quarter of 2025.
It represents the strongest performance since the 7.6 per cent growth posted in the second quarter of 2021.
A government spokesperson said the city’s economic outlook “remains positive, underpinned by strong global demand for artificial intelligence-related electronics, sustained growth in visitor arrivals and robust cross-boundary financial activities”.
Hong Kong has set a full-year growth target of between 2.5 and 3.5 per cent for 2026.
Exports of goods rose by 23.8 per cent year-on-year, while imports climbed by 29.9 per cent. Private consumption expenditure also increased by 5 per cent.
However, officials warned that “persistent tensions in the Middle East pose downside risks to the economic outlook” and noted that measures have been taken to safeguard energy supply stability.
The government added that it would “stay vigilant” as rising global oil prices continue to exert pressure on the import-dependent economy.
Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said the growth reflects both China’s economic recovery and an improving geopolitical environment, adding that stability remains crucial for financial centres.